Debt Management

When debts become so overwhelming that it seems impossible to make even the minimum monthly payment; when late fees and/or over-limit fees consume the entire payment sent to the creditor so that it feels like you are caught in a maelstrom from which there is no escape; and, ever getting the debts paid off seems like an impossibility, a Debt Management Program provides a detailed plan for the repayment, in full, of unsecured debts through regular monthly payments.

When you enroll in our Debt Management Program, many creditors will make concessions that can actually help you become debt-free sooner. For example,

Many creditors will re-age the account so that no more late fees and/or over-limit fees are charged. This means your account balance can begin decreasing with each payment rather than going up despite the fact that you sent the payment required;
In some cases, the creditors will accept a lower monthly payment than might otherwise be acceptable so that it is easier for you to budget and make this payment on time each month;
Frequently, the creditors will reduce the interest rate (APR) it charges so that more of your monthly payment is applied to the debt;
When a creditor accepts a proposal for repayment under a Debt Management Program, it will usually stop the harassing collection calls that you’ve come to dread;
If a creditor is contemplating legal action to enforce its collection activities, acceptance of a proposal for repayment under a Debt Management Program will usually forestall the creditor from pursuing action in the courts;
Enrollment in, and fulfillment of, a Debt Management Program enables you to enter into an agreement to make regular monthly payments and demonstrate your willingness and ability to honor that agreement by making “on-time” payments, as agreed, each and every month. This “informal credit history” allows you to demonstrate a new behavioral pattern; one that may be much different from the pattern shown on your credit report;
Through the on-going counseling that is available to you throughout the duration of your Debt Management Program, your Counselor can provide you with information and ideas that will empower you to become a wiser consumer and to make better financial decisions;
Finally, enrollment in a Debt Management Program allows you to consolidate your debts into a single monthly payment! This is not a bill consolidation loan. Rather, it is a plan that can help you get out of debt once and for all.

Of course, each creditor establishes its own criteria regarding what it will and will not do when you enroll in a Debt Management Program. Your Counselor can advise you as to the guidelines established by your specific creditor.

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